Saudi king dies

King Fahd of Saudi Arabia, the absolute monarch of the world's largest oil-producing country, died today, Saudi state television announced.

The Saudi royal court issued a statement saying that the king had died and that his brother, Crown Prince Abdullah, had been appointed as the kingdom's new monarch.

King Fahd, who was 84, had ruled since 1982. A moderniser, he introduced education for girls, and he was also a staunch ally of the US.

His health had suffered following a stroke in 1995, and he had rarely been seen in public over recent years.

Saudi state television interrupted regular broadcasting with recitations from the Qur'an.

"With all sorrow and sadness, the royal court, in the name of his highness Crown Prince Abdullah bin Abdul Aziz and all members of the family, announces the death of the servant of the two shrines, King Fahd bin Abdul Aziz," a statement, read by the Saudi information minister, Iyad bin Amin Madani, said.

"He died after suffering an illness. God allows the custodian of the two holy mosques, King Fahd, with great mercy and forgiveness, to reside in his wide heaven."

The king died at around 9.30am (07.30BST) at the King Faisal specialist hospital in the Saudi capital, Riyadh, officials said.

He had been admitted to the hospital on May 27, when it was said he was suffering from pneumonia and a high fever.

The king's funeral will be held tomorrow, and he will be buried in the al-Oud cemetery in central Riyadh, a Saudi official said.

The Saudi statement said the 81-year-old new King Abdullah had announced that his half-brother, the Saudi defence minister Prince Sultan bin Abdul Aziz, aged 77, would be the country's next crown prince.

An official ceremony to confirm Abdullah's appointment as king is expected to be held on Wednesday.

In a statement, the prime minister, Tony Blair, paid tribute to the king's "vision and leadership".

"King Fahd was a man of great vision and leadership who inspired his countrymen for a quarter of a century as king and for many more years before that," the statement said.

"He served his country with the utmost dedication and dignity. He led Saudi Arabia through a period of unparalleled prosperity and development.

"He was also a good friend of the United Kingdom. Our two countries have benefited very greatly over the years from his wise advice. Under his guidance we have developed extremely close political, commercial and defence links. They will always be seen as his legacy."

Buckingham Palace released a statement on behalf of the Queen, expressing her sorrow at the king's death.

"The Queen was saddened to hear of the death of King Fahd, who led Saudi Arabia with wisdom and skill for 22 years. During his reign, Britain and Saudi Arabia enjoyed a very close relationship," the statement said.

The Queen is also understood to have sent a private message of condolence to King Abdullah.

The Arab League announced that it would postpone a summit scheduled to be held in Sharm el-Sheikh, Egypt, on Wednesday, and the Saudi stock market closed down 10 minutes after the king's death was announced.

Oil prices approached a new record after news of the king's death, with the cost of a barrel of US light crude for September delivery reached $61.23. However, traders believed the impact would be short-lived.

King Fahd, who was also the prime minister of Saudi Arabia and the leader of the House of Saud, suffered a major stroke in 1995. He had been unable to perform his official duties, and Crown Prince Abdullah served as the de facto regent of the kingdom.

As the controller of the largest oil reserves in the world, the king had a personal fortune estimated to be worth billions. He had seven palaces in Saudi Arabia, a chateau on the French Riviera, a private Boeing 747 and two liner-sized yachts.

He brought the kingdom - which is home to Islam's holiest shrines, Mecca and Medina - closer to the US, allowing US forces to be based there following Iraq's invasion of Kuwait in 1990.

Despite saying it would be a temporary move, the US military remains in Saudi Arabia, and some analysts have linked the king's support for Washington to the rise of al-Qaida, whose leader, Osama bin Laden, was born into a privileged Saudi family.

King Fahd was one of seven sons of King Abdel-Aziz, who founded modern Saudi Arabia in 1932, and his favourite wife, Hassa.

His first high-level government post came in the 50s, when he was made the kingdom's first minister of education. In 1962, the then Prince Fahd became minister of the interior and, in 1967, second deputy prime minister.

On March 25, 1975, his brother, King Faisal, was assassinated by his nephew, and King Khalid assumed power. Prince Fahd, as the next in line of succession, became crown prince and the first deputy prime minister.

After ascending to the throne, King Fahd threw the weight of the kingdom behind Arab causes. He was heavily involved in regional issues such as the search for a peaceful settlement to the Lebanese civil war, which ended with an agreement signed in the kingdom.

Little is known about his private life, but he is believed to have had three wives and eight sons. His eldest son, Faisal, died of a heart attack in 1999.